Deutsche Annington strikes property deals worth 2.4 bln euros

FRANKFURT Fri Feb 28, 2014 1:57am EST

FRANKFURT Feb 28 (Reuters) - German property group Deutsche Annington announced on Friday plans to buy two property portfolios with a total of 41,500 flats for a combined 2.4 billion euros ($3.3 billion), to be paid for via two capital increases.

The company said it reached an agreement in principle to take over 30,000 residential units held by German landlord group Vitus, part-owned by Blackstone, for 1.4 billion euros, including some debt.

It is also buying about 11,500 residential units managed by DeWAG for about 970 million euros, including debt.

It will issue up to 16 million new shares to raise cash and launch a separate 12 million euro capital increase against contribution in kind.

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